Recently, Layer 1 solutions, such as Solana (SOL) and Cosmos (ATOM), have gained importance thanks to the faster transaction times of each network and lower fees compared to the Ethereum network. Attention has turned even more to layer 2 solutions that can help Ethereum keep up with the competition as it continues its process of transition to proof-of-stake..
A project that has shown a steady increase in user activity and transactions in the last 2 months is Polygon (MATIC), a platform for Ethereum infrastructure development and scaling.
Data from Cointelegraph Markets and TradingView shows that Since hitting a low of $ 0.26 when the market sold on April 18, the price of MATIC has risen 50% to $ 0.39 as adoption of this expanding L2 (layer 2) platform begins to increase..
Some popular projects migrate to Polygon
Following the announcement in early February that Matic Network would change its name to Polygon as part of its effort to become the preferred L2 aggregator on the Ethereum network, the protocol has seen a significant increase in user and project adoption.
Polygon, the top #ethereum layer 2 is going nuts!
Integrations with Aave, Pooltogether, Sushiswap, Open Sea, Curve Finance, Decentraland, and loads of other big #defi applications.
TVL on Aave on Polygon nearing 1 billion. $ matic undervalued
– Lark Davis (@TheCryptoLark) April 25, 2021
Polygon, the best ethereum layer 2, is insane!
Integrations with Aave, Pooltogether, Sushiswap, Open Sea, Curve Finance, Decentraland, and a ton of great Defi apps.
Aave’s TVL on Polygon close to 1 billion. $ matic undervalued
Since the name change, multiple decentralized finance (DeFi) and non-fungible token-related projects have made the decision to integrate with Polygon to take advantage of its fast and low fee environment.
Some More significant DeFi integrations include decentralized exchange SushiSwap (SUSHI) and Curve Finance (CRV), while OpenSea, Decentraland (MANA) and Aavegotchi (GHST) are large NFT communities now using the Polygon network.
AAVE, the popular DeFi lending platform, ad on March 31 he was exploring “new frontiers of scalability” with Polygon, and the subsequent launch of AAVE on the L2 solution grew rapidly to a value of $ 1 billion in liquidity and more than 7,200 users just 10 days after launch.
A big day for @ 0xPolygon and the whole Ethereum ecosystem!
$ 1 BILLION in liquidity and 7.2k USERS on a single application, 10 DAYS after the launch!
Huge thanks to the amazing @AaveAave team and the whole Ethereum community!
This is just the beginning, stay tuned! pic.twitter.com/wqvoOLgNbT
– Mihailo Bjelic (@MihailoBjelic) April 24, 2021
A great day for @ 0xPolygon and the entire Ethereum ecosystem!
$ 1 billion in liquidity and 7,200 USERS in a single app, 10 DAYS after launch!
Huge thanks to the amazing team at @AaveAave and the entire Ethereum community!
This is just the beginning, stay tuned!
Increase the volume on the DEX
Popular decentralized exchanges such as Uniswap and SushiSwap were a major catalyst for the growth of DeFi and the cryptocurrency sector as a whole over the past year., demonstrating the importance of a properly functioning DEX for the growth of the ecosystem.
While SushiSwap is a protocol that has made integrations with the Polygon network along with numerous other blockchains, the DEX QuickSwap is a project that focuses solely on increasing the liquidity available to the Polygon ecosystem.
As seen in the charts above, liquidity and trading volume on QuickSwap experienced a rapid increase from the end of February and this trend continued throughout the month of March.or. In the last two weeks, there has been a notable increase in volume on the platform, which is consistent with recent Polygon adoptions.
The increase in activity on decentralized exchanges is due in part to the growing list of projects that are now available on Polygon.. A quick tour of the project’s Twitter feed shows a long list of recent integrations, including IoTeX (IOTX), Everipedia (IQ), Gelato network (GELATO), Just Bet (WINR) and Umbrella Network (UMB), to name a few.
Looking to the future, A growing number of Ethereum-based projects are likely to seek a faster, lower-cost environment that also allows them to stay on the most important smart contract platform.. If they do switch to Polygon, there is the possibility of significant upside potential and the current price growth of MATIC and the rise in TVL of QuickSwap serve as proof that the protocol is a major Layer 2 contender.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Each investment and commercial movement involves a risk, you must do your own research when making a decision.